Pacific Nickel Mines Secures US$22M Glencore Loan to Fund Kolosori Project

Operational Continuity Amid Challenges

Pacific Nickel Mines Limited (ASX – PNM) has reported steady mining activity at its Kolosori Nickel Project in the Solomon Islands during the June 2025 quarter. Despite facing operational hurdles and a subdued nickel market, the company’s local mining contractor continues to work on site, stockpiling ore for shipment. This approach reflects a cautious strategy to maintain compliance with mining licence requirements while managing costs.

Glencore’s Financial Support

Central to sustaining operations is the financial backing from Glencore International AG, which has extended stockpile financing and a secured US$22 million loan facility to Pacific Nickel. During the quarter, Glencore advanced an additional A$0.169 million to fund ongoing site activities. This partnership underscores Glencore’s vested interest in the project’s potential, even as repayment of the loan remains deferred due to current market conditions.

ASX Suspension and Corporate Status

Pacific Nickel Mines remains suspended from ASX trading under Listing Rule 17.3.1, a status that will persist until the company satisfies regulatory requirements and demonstrates compliance with listing rules. The suspension followed a voluntary trading halt initiated in mid-2024 amid financing discussions with Glencore and operational uncertainties. The company has not provided a timeline for reinstatement, reflecting the complexity of resolving funding and operational challenges.

Financial Performance and Outlook

Financially, the company reported a modest net cash inflow from operating activities for the quarter, supported by Glencore’s advances. No payments were made to related parties or directors, indicating a tight control on corporate expenses. Meanwhile, Pacific Nickel is actively reviewing other business opportunities, signaling a willingness to diversify or pivot should nickel market conditions remain unfavorable.

Strategic Implications

The ongoing collaboration with Glencore and the maintenance of mining operations suggest Pacific Nickel Mines is striving to preserve project value while navigating a challenging commodity price environment. However, the lack of clarity on loan repayment and ASX reinstatement timelines injects uncertainty. Investors will be watching closely for updates on financing resolutions and market conditions that could influence the project’s viability.